Hotel Supply Growth May Not Be as Fast as in the Past

• Stock Market Performance: DJIA fell by 291 points, Nasdaq decreased by 158 points, and S&P 500 dropped by 34 points. The 10-year treasury yield increased to 4.31%.
• Lodging Industry Trends: Lodging stocks, including SLNA and BHR, traded lower. Truist held a conference call on US lodging supply growth, with Marriott having the largest pipeline, and Hyatt showing the largest year-over-year increase.
• Hotel Performance Forecasts: CBRE Hotels revised down its 2023 RevPAR forecast due to weak summer demand, expecting a 4.6% YoY growth in RevPAR. Hotel supply growth is projected to be 1%, below the industry’s historical average of 1.6% over the next five years.

The DJIA fell 291 points while Nasdaq was down 158, the S&P 500 fell 34 points, and the 10-year treasury yield was up another .05 to 4.31%. Lodging stocks were lower. SLNA traded down to an all-time low, down -12%. Also hitting another new low was BHR. Truist held a conference call with JP Ford of Lodging Econometrics. They see steady year-over-year growth in supply in the […]